3260-037A Policy to Combat Losses and Insure Prompt Delivery of Carted and Lightered Goods

Published CBP guidance; operative status and applicability must be assessed from the retained publisher edition.

CUSTOMS DIRECTIVE
ORIGINATING OFFICE: FO:TP:CC DISTRIBUTION: S-01
CUSTOMS DIRECTIVE NO. 3260-037A
DATE: MAY 14, 1999
SUPERSEDES: 3260-037, 12/14/84
REVIEW DATE: MAY 2001
SUBJECT: POLICY TO COMBAT LOSSES AND INSURE PROMPT DELIVERY OF
CARTED AND LIGHTERED GOODS
1 PURPOSE. This directive establishes policy for Customs officers regarding
losses or other irregularities with respect to cartage and lighterage, and to explain
"prompt delivery."
2 POLICY.
2.1 Unauthorized deliveries: The bond of a Customs cartman or lighterman
guarantees that the cartman or lighterman will deliver the entrusted goods only to a
Customs officer. Delivery to a place under the control of a Customs officer, such as a
Customs bonded warehouse, or to a place as instructed by a Customs officer satisfies
that guarantee. Delivery to any other place is a default of that bond guarantee, and
liquidated damages should be assessed.
2.2 Use of Persons who have not been designated as Customs cartmen or
lightermen. The delivery of entrusted goods to a person who is not a Customs cartman
or lighterman for subsequent cartage is an unauthorized delivery. The Customs
Service ruled in C.S.D. 82-26 that a Customs cartman may not turn over goods
entrusted to that cartman to a person who has not been designated as a Customs
cartman. The ruling in C.S.D. 82-82, which allowed one licensed Customs cartman to
transfer goods entrusted to it to another licensed Customs cartman, does not change
the ruling published as C.S.D. 82-26. As an unauthorized delivery, the delivery to an
unlicensed cartman is a bond default, and liquidated damages should be assessed.
3 AUTHORITIES/REFERENCES. The bonds posted with the Customs Service by
a cartman or lighterman (CF 301) guarantee the performance of cartmen and
lightermen to safely and promptly deliver goods entrusted to them, and their
performance in complying with the statute (19 USC 1565) and the regulations (19 CFR
Part 125) on cartage and lighterage. Other references in this directive: C.S.D. 82-26;
C.S.D. 82-82; 19 CFR 125.41; 19 CFR 101.6.
4 DEFINITIONS. Prompt delivery: Under 19 CFR 125.41 Customs cartmen and
lightermen are responsible for prompt delivery of all goods entrusted to them. Because
all cartage is within a limited geographical area, cartage and lighterage normally should
be completed by the close of the next business day following receipt by the cartman or

lighterman. (Customs hours of business are delineated in 19 CFR 101.6) Absent
unusual circumstances as determined by the Port Director, the business day after
receipt by the cartman or lighterman is to be treated as satisfying the obligation for
prompt delivery. Failure to meet that time limit in normal circumstances should be
treated as a bond default, and liquidated damages should be assessed.
5 RESPONSIBILITIES.
5.1 The Director, Field Operations, at the CMC will ensu re that Port Directors within
the jurisdicti on of the CMC have in place procedures addressed in this directive.
5.2 The Port Director will ensure that procedures to combat losses and ensure
prompt delivery of carted and lightered goods are developed and followed within his
jurisdiction.
Assistant Commissioner
Office of Field Operations